John Carl,
Editor
May 27, 2022
Yes, it’s true inflation is generally bad news.
But that doesn’t mean there aren’t a few fringe benefits — if you know how to take advantage of them.
Why sit at home and watch the buying power of your dollars evaporate when you could be out living your best life?
Here’s how to make the most out of this over-inflated economy.
#1 – Finally Take that Trip to Europe (And Enjoy A 15% Discount!)
While your dollars continue to lose buying power, that doesn’t mean it’s happening evenly across the globe. At present, the US dollar is holding strong overseas — especially in Europe.
The Euro is giving away more buying power to Americans with each passing day. In fact, it’s been almost 20 years since the Euro has been this close to parity with the dollar. It’s not the worst idea to use your dollars where they’ll buy more than what you can get at home. And while inflation is certainly pushing up prices across the continent, on average it isn’t quite as bad as it is here.
So this summer is a great time to get out of the US for a few weeks and take that long, overdue trip to France, Spain, and Italy. Depending on your timing, you could save as much as 15-30% compared to what you would have paid in relative dollars just a few years ago. (I personally am in the process of booking a trip to Naples, Italy. Ciao!)
#2 – Use this Moment to Buy Art and Collectibles
The price of art and collectibles aren’t immediately affected by sudden spikes of inflation (and sometimes they even trend lower). The wealthy certainly know this. They’re using art as a hedge against inflation, and so high-end art shows like the Art Basel Miami are seeing an uptick in interest. There’s good historical precedent for this strategy.
Malcolm Forbes famously used times of high inflation to stock up on luxury goods — some of his biggest shopping sprees were during the Stagflation of the 1970s and included cars, motorcycles, Fabergé eggs, and even a chateau in France. While certainly extravagant, they proved to be wise investments: the value of his purchases far outperformed the stock market over the following two decades.
Now, I certainly wouldn’t recommend buying more art than you can afford or appreciate. But you don’t need to have the wealth of Malcolm Forbes to make a few smart purchases that are meaningful to you.
Or to quote a recent article I read:
“There are many avenues that one can take to optimize their investments, and in recent years, art collection has been recognized as one solid strategy.” Forbes Columnist Nouriel Gino Yazdinian
He goes on to say that he’s seeing a wide variety of investors “…from all walks of life and socioeconomic backgrounds” who are turning to art.
So if you’ve been eyeing an original painting for the foyer, or a first pressing of a David Bowie album, or perhaps an antique vase for your kitchen table, then this might be the best time to buy it.
#3 – Ride the Rise of Precious Metals
With the prices of silver and gold trending up (and set to return to record levels) it’s not a bad time to invest in jewelry. But you don’t need to buy a ring for each finger…
There are other ways to play gold and silver to your advantage. In fact, now is the perfect time to buy precious metals while the getting is good. But instead of bullion, I recommend going straight to the source.
When you invest in a junior miner, you’re tapping into projects with reserves that grow in value every time the market bears roar. They not only give you positive exposure to the price of precious metals themselves — but because of their reserves, they hand you bonus profits driven by the spike in demand. (Think of it as free leverage.)
And my colleague Nick Hodge has discovered the perfect find.
He recently visited a junior miner with a one-of-a-kind silver mine.
One of the reasons Nick is so excited about this silver project is that there aren’t a lot of high-quality, pure silver projects in the world.
As you may know, silver is usually mined as a by-product of other metals, which can hinder you from getting the most out of high silver prices. But not this mine…
It’s as pure as they come, in an established district with proven reserves. As Nick puts it: “that’s a rare find.” Watch Nick’s video for the full report on why this silver mine is so valuable (especially for investors).
Don’t let inflation keep you from living your life. While the economy remains tough, there are still plenty of ways to prosper.
John Carl
Editor, Daily Profit Cycle